The sale of 50,000 residential tourism units in Portugal would represent a turnover of more than €10 billion, with €500 million received in direct taxes, according to a study released today.
"Impact on the Portuguese Economy of each new Foreign Resident," developed by the Portuguese Association of Resorts (APR), in partnership with PricewaterhouseCoopers concluded that sale of 50,000 properties also could represent 120,000 new jobs per year.
To these numbers can be added the indirect revenues from the trade and services sector, according to the Association's commentary.
"This study proves that residential tourism has a multiplier effect on the national economy and is of crucial importance in attracting foreign investment, for domestic consumption growth and for creating jobs," says the president of APR, Diogo Gaspar Ferreira.
According to Ferreia, "the tourism sector is the largest contributor to Portugal’s Gross Domestic Product and the creation of employment and residential tourism is the segment with the greatest potential to attract foreign direct investment."
Data from the Association of Professionals and Real Estate Companies of Portugal (APEMIP) that formed the basis of the APR study, reveal that in 2014 the sales of property to foreigners reached 25,000 units, representing €4,600 million in direct investment from abroad, €230 million in taxes and €1 billion related to the maintenance and use of the properties purchased.
The Association points out that “the Golden Visa programme represented about 1/3 of these numbers, about 10% of the number of units sold as the average price of a Golden Visa property is three to four times higher than the average property sale price."
APR also believes it is possible to double the current 5% share that Portugal has of the European residential tourism market to 10% and to out-do the competition from Spain which attracts 40% and France and Italy with 20% each.
For this to happen, "it is necessary to invest in an intensive international promotional programme to put the country as a second home destination," said Ferreira from Vale de Lobo, forgetting perhaps that this is one of the key roles of the Association which he helped to found along with Quinta do Lago, Oceânico Group, Pestana Group, Sonae Turismo and Amorim Turismo, amongst others.
The Association’s main objective is the pro-active and effective international promotion of Portugal as a leading second home destination.
‘Residential tourism in Portugal, in view of its outstanding quality and choice, was earmarked in the most recent "National Tourism Strategic Plan” (PENT) as one of 10 key segments in Portugal’s tourism industry,’ according to the Association’s website.
‘No official form of effective promotion has been implemented to highlight the country as a leading and high quality second home destination’ according to the mentor of this project, Diogo Gaspar Ferreira, CEO of Vale do Lobo.
It still hasn't, as this sort of 'what if' report produced by resorts with spare capacity does little but show what could happen in an ideal world, rather than getting on with the job of promoting its members as top second home destinations which the Association appears to suggest is someone else's responsibility.
